Morgan Stanley Q1 Profit Surpasses Expectations. Discloses Almost $1B Archegos Loss

Morgan Stanley Q1 Profit Surpasses Expectations. Discloses Almost $1B Archegos Loss

Morgan Stanley’s net income rose to $4.1 billion or $2.19 per share in the quarter ended March 31, according to the company’s press release. The quarter profit was higher than expected $1.70 per share, and a jump from $1.7 billion, or $1.01 per share, a year ago.

Net revenues for the first quarter was $15.7 billion, up from $9.8 billion a year ago.

Global investment banking fees jumped to an all-time high of $39.4 billion 

Investment banking revenue more than doubled to $2.6 billion, driven largely by the volume of SPAC deals.

The bank delivered a Return on Average Tangible Common Shareholders’ Equity of 21.1%, or 21.4%, excluding the impact of integration-related expenses. 

Wealth management delivered a pre-tax margin of 26.9%, or 27.9%, excluding integration-related expenses.

The firm repurchased $2.1 billion of its outstanding common stock

Morgan Stanely recorded a 66% jump in revenue at its institutional securities business, driven by a spike in trading in “meme” stocks like GameStop Corp.

Morgan Stanley also generated record underwriting revenue from various high-profile IPOs such as Affirm Holdings and AppLovin Corp. 

The bank conceded the second position in the league tables to JPMorgan during the quarter.

The firm disclosed a loss of almost $1 billion from the collapse of private fund ArchegosMorgan Stanley stock is currently gaining. MS: NYSE is up 0.71%

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